Government Relations Update

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• Government Relations Update
• Plenary Session
• Terry Hartle
• San Diego, CA
• February 11, 2008

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Complex Political Environment
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• Narrowly divided government
• Rampant partisanship
• Election coming

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Economy will shape political agenda
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• Most important election issue
• Sept 07 Feb 08
• Economy / Jobs 11 39
• Iraq War 35 19

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Federal Policy Agenda for Higher Education
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• Student loans / Pell Grants
• Reauthorization
• 2009 Federal Budget

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Student Loans / Pell Grants
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• College Cost Reduction and Affordability Act
• Lender subsidies cut (20 billion)
• Pell grants increased (13 billion)
• Interest rates cut (6 billion)
• Repayment / targeted spending (1 billion)

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Student Loans / Pell Grants
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• Goal Add money to Pell Grants and boost maximum
  award
• Goal Reduce interest rates for borrowers
• Grants and loans reauthorized

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Reauthorization of the Higher Education Act
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• Senate bill (S. 1642) July 2007
• House bill (H.R. 4137) - February 2008
• Widespread bipartisan support
• Conference starting now

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Reauthorization Key Issues
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• Accreditation / Outcomes
• College prices Watch / Alert Lists
• House 129
• Senate 673

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Reauthorization Key Issues
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• Reporting and recordkeeping mandates
• House 222 and counting
• Senate 153

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2009 Federal Budget
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Five numbers worth knowing

• 3.1 trillion
• .3
• 260 billion
• 47
• 1.1 million

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Student Aid
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• Pell Grants Good and Bad News
• Eliminations Supplemental Grants, Perkins
  Loans, LEAP, Vocational Ed
• Cut Aid to HBCUs and HSIs
• Level TRIO, GEAR UP, Work Study, Developing
  Institutions

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Research Funding
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2009 Federal Budget
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• Discretionary spending is tight
• Future of earmarks unclear
• Can Congress pass a budget?

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The Year Ahead
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• Reauthorization of HEA
• Cost of college will remain an issue
• Endowments
• Conflict of interest

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Cost of College
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• Economic uncertainty increases visibility
• Wide variation in prices
• Prices are increasing steadily for multiple
  reasons

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Price of College vs. Consumer Prices
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(No Transcript)
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Endowments
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• Senate Finance Committee
• Higher Education reauthorization
• Connection to college prices
• Great misunderstanding

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Conflict of Interest
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• Student loans
• International education
• Entrepreneurial spirit on campus
• Need for attention by campus leaders